Egypt’s Hassan Allam plans to list shares in Cairo, London

Hassan Allam is a general contractor operating in Egypt, where it employs more than 34,000 people. (AFP)
Updated 08 October 2018
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Egypt’s Hassan Allam plans to list shares in Cairo, London

  • Hassan Allam is a general contractor operating in Egypt, where it employs more than 34,000 people
  • It did not give a date or pricing information for the share offer

CAIRO: Egyptian construction and engineering group Hassan Allam said on Monday that it would float up to 44.3 percent of its shares on the Egyptian Exchange and the London Stock Exchange.
The company said it intended to use the proceeds to develop solar assets, fund its water platform, acquire a specialty engineering company, and support continued growth in construction and building materials businesses.
Hassan Allam is a general contractor operating in Egypt, where it employs more than 34,000 people, and through subsidiaries in Saudi Arabia and Algeria, according to an announcement of the sale on the company’s website.
It did not give a date or pricing information for the share offer.
Renaissance Capital and EFG Hermes will be joint global coordinators for the sale, and together with Arqaam Capital will also act as joint bookrunners, the company said.
It said the selling shareholders were the Hassan Allam family, which collectively owns an 86.2 percent stake in the company, as well as the International Finance Corporation, which owns a 13.8 percent stake.
The announcement of the sale comes amid a surge of private and public offerings that will test investor appetite in Egypt at a time of emerging market turbulence.


Japan, Philippines meet to advance infrastructure plans

Updated 30 min 55 sec ago
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Japan, Philippines meet to advance infrastructure plans

  • Japanese loans so far dwarf those of China, whose pledges for projects are still largely ideas
  • Duterte has made a $180 billion infrastructure overhaul the centerpiece of his economic policy agenda, but people are looking for progress

MANILA: Philippine government ministers met with a top adviser of Japan’s prime minister on Wednesday, in a effort to move forward major infrastructure projects, just hours after a visit by the Chinese president pledging to do the same.
Philippine leader Rodrigo Duterte has made a $180 billion infrastructure overhaul the centerpiece of his economic policy agenda, but already into the third year of his presidency, he is under some pressure to show signs that his ambitious “Build, Build, Build” program is making much progress.
While attention has been focused largely on fanfare of Duterte’s “pivot” to China and his frequent praise for Beijing’s economic support, agreed Japanese loans so far dwarf those of China, which has pledged billions of dollars of financing and investment for projects that are still largely ideas.
Japan will finance 156.4 billion yen ($1.39 billion) for the construction of a subway in the capital Manila, rehabilitation of one of its troubled elevated rail lines, a new Manila bypass road and a new airport on Bohol, a tourist island.
The loans are part of an 1 trillion yen aid and investment package offered in 2017 by Japanese Prime Minister Shinzo Abe, whose special adviser, Hiroto Izumi, is in Manila to discuss revamping a railroad across the capital, a flood control system, and jointly operating an industrial zone, Finance assistant secretary Antonio Lambino told Reuters.
Edmund Tayao, a Manila-based political analyst, said the strong performance of the Philippine economy meant it had outgrown its infrastructure, and there was public pressure to modernize it.
“This is a long-delayed requisite,” he said. “When we speak of trains, mass transit systems, disappointment is an understatement. It is frustrating to compare it with neighbors.”
Expectations have been high since Duterte left China two years ago with $24 billion of investment and loans pledges, and there were hopes that this week’s visit of Chinese President Xi Jinping, the first in 13 years, would have seen firm commitments for those to advance.
However, of Tuesday’s 29 agreements, the only loan agreed was $232.5 million financing for a dam. Others counted as deals included two feasibility studies, memorandums of understanding for arrangements that already existed, or a handing over of certificates.
Michael Ricafort, an economist at RCBC bank in Manila, said that with the spotlight on foreign interest in the infrastructure program, the government was keen to show progress was being made.
“The government is now put on the spot. People are looking for the promises to be fulfilled.”